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12-20-2005, 12:29 AM
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#1
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Status: Junior Member
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 Taxes
Well iam opening up a small software company with a few apps that will be for sale. What I wanted to know is that will I get taxed if I charge people for the software?
I will be using paypal for the money!
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12-20-2005, 08:28 AM
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#2
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Status: The BidMaster
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Location: England
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It will depend where you live, different countries have different regulations etc. Like in the UK you pay Tax on your earnings if you exceed something like £4,500/year.
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12-22-2005, 04:27 PM
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#3
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Status: Member
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Location: Pottstown, PA
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No matter where you live, you need to make sure you're keeping good accounting records. In the US, even if you don't earn enough to owe federal taxes, most states and local governments will tax you no matter how little you make. Using PayPal for the money makes no difference whatsoever for tax purposes. It's all about how much income/profit you make, and that's what you're taxed on. The government doesn't care how clients pay you.
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12-23-2005, 12:51 AM
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#4
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Status: Junior Member
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Alright, however does age matter?
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12-23-2005, 12:56 AM
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#5
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Status: Ruby on Rails Developer
Join date: Oct 2004
Location: England, UK
Expertise: Ruby, Rails, jQuery
Software: Chocolat, Sublime Text 3
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I think over the age of 16 you're legiable to be taxed, because you get your National Insurance number then and i think that's when everything starts tax wise.
However, i'm not 100% sure, so if anybody could give the correct answer then you'd be helping me too.
- Cheers
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12-23-2005, 01:42 AM
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#6
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Status: I'm new around here
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Originally Posted by Jambo
I think over the age of 16 you're legiable to be taxed, because you get your National Insurance number then and i think that's when everything starts tax wise.
However, i'm not 100% sure, so if anybody could give the correct answer then you'd be helping me too.
- Cheers
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The legal age you can start being taxed is 15 years old. If you turn a loss in your business and you are not officially incorperated you are completely liable for your losses.  But if you are incorperated no matter what age you are you are required to file taxes in the US.
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12-23-2005, 02:59 AM
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#7
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Status: Member
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Location: Pottstown, PA
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Yeah. It's really a question of where you live. And remember that just because your federal government may or may not tax you at a certain age, doesn't mean your local government won't. And since you're not talking about freelancing here, you're talking about a "small software company" that's a whole different thing. In some places you can't legally even start your own business until you're legally able to enter into contracts (generally 16-18 years old in most places).
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